Many young people have hopes and dreams starting their own business, but the one thing that is holding them back is money. Most of them lack the funding.
So, we have created a list of the top five tips to help young entrepreneurs invest and save wisely.
Define your Goals
It is crucial to accurately gauge the amount of capital you will need to start your business.
This is tricky because if you underestimate your capital, you may run out of money before your business can turn profits.
On the contrary, if you overestimate, you could cause unnecessary delays. Get an accurate estimate so that you can decide how much you need to save.
[Related: How Entrepreneurs Should Manage Wealth]
Monthly Savings
Make a commitment to save a set amount each month. We suggest the 50/30/20 rule.
This means that 50 percent of your income should pay for living expenses, 30 percent for flexible spending (think internet costs, cell phone, gym membership) and 20 percent should go towards savings and investments.
[Related: 5 Things to Know Before Starting a Business]
Include a Marketing Plan in Your Budget
This may be the most important thing you can do to ensure success. Create a marketing plan from the very beginning and include the costs of your marketing plan in your budget.
A good marketing plan can quite literally be the difference in success and failure for your business.
Your marketing plan should set clear and concise goals for your business as well as ensure that you set measurable, realistic goals and that you understand your target audience.
[Related: Financial Planning for Small Business Owner]
Set a Goal Date for Launch
Be realistic in your timeline and choose a unit trust that will help you achieve your objective. After you choose a date, select a unit trust investment that suits your timeline and risk profile.
Stick to the Plan
Being consistent in your monthly contributions is crucial. You can set up a debit order to ensure your monthly contributions.
This option eliminates the temptation to spend the money on something else and it ensures that you make progress each month.
For help with investing and financial planning, contact Blisk Financial Group today.